When you cannot pay a bill

Money can run short, especially when a loan instalment is late or an unexpected cost lands. The worst thing you can do is ignore the bill. Acting early keeps your options open.

Act early and talk

• Open every bill and letter, even when you are worried; hiding them makes things worse.
• Ofgem says to contact your energy supplier early: you can ask for a payment plan, a payment break or reduction, a review of your payments, or access to hardship funds.
• Many universities have hardship funds and money advisers; the Student Money Survival module covers these.
• Tell your family if you can; asking for help is a sign of responsibility, not failure.

Priority bills come first (UK)

• Citizens Advice lists rent arrears, council tax arrears, gas and electricity bills, and TV licence payments among priority debts, because the consequences are serious (eviction, court, disconnection or fines).
• Phone and internet bills are priority only if you really need them, for example for work or a disability.
• Citizens Advice lists credit cards, unsecured loans including payday loans, and unpaid water bills (water cannot be cut off) as non-priority debts.
• Deal with priority debts first, then ask other creditors to stop chasing you while you do so.
• Never take a payday loan or new credit to pay a bill without getting free advice first; see the Banking and Credit module.

Free, trustworthy help

• Citizens Advice gives free advice on debts and bills; Ofgem lists its energy advice line for England as 0808 144 8844.
• StepChange Debt Charity offers free debt advice on 0800 138 1111 and online.
• StepChange and Ofgem mention Breathing Space, which can give up to 60 days' protection from creditors in England and Wales while you set up a debt solution.
• Avoid companies that charge fees for debt help when free services exist; check that any adviser is a recognised charity or service.

A script for calling a company

• 'Hello, my account number is ____. I am a student and I cannot pay the full bill of ____ by the due date.'
• 'I can pay ____ now and ____ per month. Can we set up a payment plan?'
• 'Can you put a note on my account and confirm the plan in writing by email?'
• Write down the date, the name of the person you spoke to and any reference number.

In the UAE

• Contact the provider (for example DEWA or your telecom company) as soon as you know you cannot pay, and ask what options exist.
• DEWA's move-out page notes that previous bills must be fully paid before you can request a move-out, so unpaid bills can delay your deposit refund.
• Do not borrow from informal lenders or friends at pressure; talk to your family or a trusted adult first.
• UK schemes such as Breathing Space do not apply in the UAE; ask your bank or a qualified adviser about local options.